Palm oil sourcing giant Wilmar International has unveiled plans to use satellite tracking and other digital technologies in a bid to eliminate deforestation risks from its supply chains. The company, which supplies 40% of the world’s palm oil, made a new pledge on Monday (10 December) to ensure that its supply chains are classed as “deforestation-free” by 2020 – a commitment which builds on its 2013 “no deforestation, no peat, no exploitation” (NPDE) sustainability strategy. In order to achieve the new goal, Wilmar International will carry out a supplier audit by the end of January 2019, with all suppliers found to be driving forest loss then facing “immediate” suspension.

EcoVadis's insight:

Soybean and palm oil cultivation along with timber production and cattle rearing are major contributors to deforestation; and these economic commodities have been getting a lot of attention recently. If current deforestation levels continue, the world’s rainforests may completely vanish in as little as 100 years, according to National Geographic, and this will have a disastrous effect on our world if we don’t act.

France set out plans on Wednesday to tackle deforestation around the world, saying it would look to curb imports of products such as palm oil, soy, and beef which it said contributed to the problem of forest areas disappearing. Palm oil, a type of vegetable oil used in confectionery and other goods, is controversial because of the environmental impact of clearing forests to make way for plantations. The majority of the world's palm oil comes from Malaysia and Indonesia, where deforestation has threatened orangutan populations.

Mondelēz International, the company behind Oreo cookies and Ritz crackers, continues to source palm oil linked to deforestation in Indonesia, according to a Greenpeace report. The report said the company’s suppliers had cleared an area of rainforest greater than the city of San Francisco from 2015 to 2017, of which more than a third was orangutan habitat.Greenpeace says Mondelēz’s supply chain continues to be tainted with palm oil produced on deforested land because it uses the weakest certification model for its supply.

Wood from threatened south-east Asian rainforests has been used to build venues for the Tokyo 2020 Olympics, according to complaints filed with organisers. At least 134,000 large sheets of tropical plywood from Malaysia and Indonesia have been used as concrete moulds to build stadiums, causing what campaigners say is irreversible harm to precious biodiversity reserves.

EcoVadis's insight:

Deforestation occurs around the world, though tropical rainforests are particularly targeted and it can have wide reaching environmental effects. Scientists have predicted that by 2050, deforestation could reduce rainfall across the Amazon by 21 percent during dry seasons and 12 percent during wet seasons. However, an increasing number of major multinational companies are committing to tackle deforestation issues in their supply chains in a view to enhancing environmental and social impacts through responsible sourcing.

The Roundtable on Sustainable Palm Oil (RSPO) has adopted new standards that will prohibit its member companies from clearing any type of forest for palm plantations. RSPO-certified companies were previously permitted to clear secondary forests and peat forests with a peat layer no deeper than 3 meters (10 feet). The move comes amid a growing consumer backlash that has prompted companies to make zero-deforestation commitments. Environmental activists have welcomed the RSPO’s deforestation ban with cautious optimism, noting that enforcement of the certification body’s standards has historically been lax.

Environmental groups welcomed an initiative by global tire manufacturers to stop the destruction of forests to make way for rubber plantations, but warned that the industry-backed organization must act independently to be effective. The Global Platform for Sustainable Natural Rubber (GPSNR) - which includes Michelin and the Goodyear Tire & Rubber Co – will begin operations in March at its headquarters in Singapore, according to a statement from the organization.

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